December 4, 2015

Limoneira Company announced it has acquired 757 acres of citrus orchards in California’s San Joaquin Valley for $15.1 million. The transaction closed on December 2.

The acreage, which was comprised of lemon, orange, and specialty citrus orchards, was acquired through purchase options that were part of operating leases that Limoneria has had since 2012 on approximately 1,000 citrus acres, which the company referred to as the Sheldon Ranch leases.

“We are pleased to complete the acquisition of the orchards that were part of the Sheldon Ranch leases,” said Harold Edwards, president and chief executive officer of Limoneira, in a company release announcing the acquisition. “We have recently acquired approximately 900 acres of land that was previously leased in the highly productive San Joaquin Valley, and this is expected to generate incremental operating results and cash flows resulting from the elimination of lease expense beginning in fiscal year 2016.”

Total rent expenses for the property were approximately $1.4 million in fiscal year 2014, and $1 million for fiscal year 2015.

Santa Paula, California-based Limoneira was founded 120 years ago and has grown to be a leading integrated agribusiness supplying lemons, avocados, oranges, and specialty citrus products and crops from a land bank totaling 10,700 acres of agricultural land, real estate properties, and water rights in California and Arizona. Since going public in 2010, the company has acquired 3,300 acres totaling $48.5 million.

Mr. Edwards goes on to comment in the release, “…as we begin to realize cash flow from our recent real estate development agreements, we remain focused on capitalizing on strategic and accretive acquisition opportunities to further expand our global agribusiness.”